Sustainable Supply Chain Initiatives Help Majority of Top 20 Semiconductor Companies Thrive in 2021, According to GlobalData
In 2021, approximately 95% of the top 20 publicly traded semiconductor companies by revenue saw more than 22% year-over-year (YoY) growth. This comes despite supply chain issues, logistics network disruptions and increased demand for technology, finds GlobalData, a leading data and analytics company.
Divya Vootkuru, Company Profile Analyst at GlobalData, comments: “All of the top 20 semiconductor companies reported positive year-over-year revenue growth in 2021, with 20%, including Qualcomm, NVIDIA, MediaTek and Advanced Micro Devices, reporting revenue growth of more than 50%.”
A significant increase in customer demand for electronic products and the conclusion of prepayment arrangements in supply chain networks have led major semiconductor companies to expand their business activities. According to a study by GlobalData, the semiconductor industry was valued at $500 billion in 2021* and is expected to grow at a compound annual growth rate (CAGR) of 7% between 2021 and 2025.
Vootkuru adds: “However, a delay in delivering products to customers or cancellations due to disruptions could have had a significant negative effect on business operations. sustainable supply chain. These included long-term purchase commitments, prepayment agreements with suppliers and additional capacity agreements. Long-term contracts with suppliers and increased manufacturing facilities will help semiconductor companies to reduce product delays and cancellation issues.
Advanced Micro Devices (AMD)
AMD reported 68% year-over-year revenue growth on the back of AMD Radeon, AMD Instinct, MI200, AMD Ryzen and EPYC Server GPU launches and increased sales of computing and graphics and enterprise products, integrated and semi-customized.
Rising sales of GeForce GPUs and demand for NVIDIA’s Ampere architecture products led to 61% growth in its gaming segment. Sales of NVIDIA Ampere architecture GPUs also saw a 58% increase in data center revenue. These two elements helped NVIDIA achieve 61% year-over-year revenue growth.
Qualcomm and Mediatek
An increase in demand for 5G products on handsets, radio frequency front-end (RFFE) and 5G system-in-chip (SoC) enabled Qualcomm and Mediatek to improve their financial performance. Launching 5G multi-mode SoC and accelerating 5G migration helped Mediatek achieve 62% revenue growth and 187% increase in net profit. Commercial deployments of 5G networks have helped Qualcomm achieve 50% revenue growth and 74% year-over-year net income growth.
ON Semiconductor reported 28% revenue growth driven by increased demand for PSG, ASG and ISG semiconductor products. The company also recorded a net profit growth of 331% which was attributed to Onsemi sales.
Among the top 20 semiconductor companies, NXP Semiconductor recorded very high net profit due to adjustments to reconcile its net profit of $1.6 billion and $0.4 billion of assets and liabilities to exploitation.